Cod farmer raises £14.8m from share issue

Norwegian cod farmer Norcod has raised almost NOK 190.5 million (£14.8m) with a private placement of new shares.

Norcod had hoped to raise between NOK 125-175m from the placement but increased the number of shares available due to high interest.

Completion of the placement is subject to an extraordinary general meeting of Norcod to be held on or about next Monday, resolving to issue the shares.

Trading in the company’s shares was suspended last week while the private placement was under way and has now resumed.

Increasing biomass

Net proceeds of the share placement will be used to increase biomass in accordance with the company’s production plan, develop two new locations, and for general corporate purposes, Norcod said last week.

The company also said that during Q1 2023 it had initiated accelerated harvesting which has led to significant pressure on operating expenses and cash flows.

The earlier-than-planned harvest was prompted by the discovery that some cod has reached sexual maturity and could spawn. At the end of February, Norway’s Directorate of Fisheries ordered Norcod to harvest cod in a total of five cages at three locations.

Norcod was also instructed to follow up the development in the remaining cages. The degree of maturity led to the Directorate of Fisheries on 4 April ordering the harvesting of a further two cages at Frosvika, with a deadline of 21 April.